Hello,
Thank you for the detailed testing. Based on what you described, this does look more like a File History status/indexing issue than an actual failure to copy the files.
KB5101684 does contain changes related to File History, specifically a fix for automatic backups to SMB network shares. However, Microsoft currently states that there are no known issues with KB5101684, and I could not find an official acknowledgement yet of the local-drive File History behavior you described.
Since the files are actually being written to D:\FileHistory but the “Restore Personal Files” view and “Last backup” time remain outdated until the same drive is selected again, your findings are useful evidence of a possible regression.
For now, I would suggest:
- Continue using “Select Drive” and re-selecting D: as a temporary workaround.
- Submit this behavior through Feedback Hub (Win + F), preferably under Files, Folders, and Online Storage > File History, and include the KB number and your reproduction steps.
- Since KB5101684 is a preview update, if this problem is affecting regular backups, you can also uninstall KB5101684 temporarily and check whether File History immediately returns to normal.
At present, we cannot confirm that Microsoft will include a fix in the August security update until Microsoft officially acknowledges the issue, but your reproduction steps strongly suggest that this should be investigated as a KB5101684 regression.